Anactinomycete, strain C-38,383, was selected in a screening program for the isolation of novel antitumor agents. A yellow crystalline product, named rebeccamycin, was isolated from the mycelium and was found to have activity against P388 leukemia, L1210 leukemia and B16 melanoma implanted in mice. Rebeccamycin inhibits the growth of humanlung adenocarcinoma cells (A549) and produces single-strand breaks in the DNAof these cells. No DNA-protein cross-links were detected. A related antibiotic, staurosporine, is produced by Streptomyces staurosporeus and Streptomyces actuosus. Strain C-38,383 was found to resemble closely strains of Nocardia aerocolonigenes recently renamedSaccharothrix aerocolonigenes. A strain selection isolate without aerial mycelium, C-38,383-RK-l, failed to produce rebeccamycin while a strain with aerial mycelium, C-38,383-RK-2, was found to be a suitable strain for production. A description of the producing strain is presented and its taxonomic position is reviewed. A fermentor containing 37 liters of production medium gave a rebeccamycin yield of 663 mg/liter after 204 hours of incubation with strain C-38,383-RK-2.Strain C-38,383, an actinomycete isolated from a soil sample collected in Panama, was selected for further study since clarified culture fluid inhibited KB cell culture growth.10 A product, crystallizing as fine yellow needles, was isolated from the mycelium of strain C-38,383 grown in submerged culture. This compound was found to be soluble in dimethyl sulfoxide and tetrahydrofuran, poorly soluble in commonlyused organic solvents and insoluble in water. Significant in vivo antitumor activity was obtained with murine tumor tests. The active compound,a novel iV-glycoside containing a symmetric heterocyclic aglycone with two chlorine atoms, was named rebeccamycin (Fig.